DOJ Won't Prosecute Sidley In Tax Scandal

Law360, New York (May 24, 2007, 12:00 AM EDT) -- Federal prosecutors said Wednesday they would not charge law firm Sidley Austin LLP with a role in the alleged illegal tax-shelter operation of its former tax partner, Raymond J. Ruble, and its former client, accounting firm KPMG.

Sidley Austin will still pay $39.4 million in civil penalties for its limited role as Ruble's employer during the alleged illegal tax sheltering, as part of a comprehensive settlement with the Department of Justice and Internal Revenue Service.

With Wednesday's announcement, Sidley Austin and its partners escaped the fates...